What to Know From the ASA Fair Value Conference
Regardless of whether you practice in the area of fair value for financial reporting, there were some valuable insights offered at the ASA Fair Value Conference in New York City this past April. Many of the concepts and methodologies apply in other valuation contexts, so valuation analysts should keep up on developments in this area.
A Method for Forecasting Property Impairment Resulting From Climate Change
This article adds to the discussion of the impact of environmental, social, and governance (ESG) impacts on the valuation of businesses with real estate as an integral part of their operations.
Kroll lowers recommended ERP to 5.0%
Kroll has decreased its recommended U.S. equity risk premium (ERP) from 5.5% to 5.0% when developing USD-denominated discount rates as of June 5, 2024.
‘The Son-in-Law Also Rises’: Do founding family-run firms have less value?
Assume you’re valuing a family business that the son-in-law of the founder, who recently passed away, runs.
BVU Cost of Capital Center adds more Pepperdine info
Starting with the August issue of Business Valuation Update, information on rates used in practice for company-specific risk, industry risk premia, and the size premium will be included in the monthly Cost of Capital Center.
2024 Pepperdine report is now available
The 2024 edition of Pepperdine’s annual survey of expected rates of return with respect to private companies is now available (for free, thanks to continued financial support).
New feature in Business Valuation Update spotlights research
To promote more of a connection between valuation practice and financial research, BVR’s monthly Business Valuation Update now includes a recap of research and scholarly papers that should be of interest to valuation experts.
Private firms see inflation as the top risk
Over three-quarters (78%) of private companies see inflation as the most concerning business threat, according to the “Private Company Performance Report” from CitrinCooperman.
Preview of TAF guidance on the company-specific risk premium
In the last issue, we mentioned that auditors are looking for more quantification of the company-specific risk premium.
Auditors need to see more quantification of company-specific risk
One of the major audit review issues is company-specific risk (CSR), revealed a panel of Big Four leaders at the recent ASA Fair Value Conference in New York City last week.
Lingering high interest rates may trigger more goodwill impairments
Faced with elevated interest rates that show no signs of dropping, more companies will be forced to recognize goodwill impairments, according to a recent Wall Street Journal article.
What to know from the ASA Fair Value Conference
It was another great turnout for the ASA Fair Value Conference in New York City last week.
Reminder: Take the IVSC survey on ESG
To investigate the evolution of how environmental, social, and governance (ESG) factors are being incorporated into the valuation process, the International Valuation Standards Council has launched a survey.
BV News and Trends April 2024
A monthly roundup of key developments of interest to business valuation experts.
Today! Free webinar on BVR’s cost of capital platform
Find out why over a third of survey respondents use BVR’s Cost of Capital Professional platform during a free webinar today, April 17, from 10:00 a.m. to 11:40 a.m. PT (1:00 p.m. to 2:40 p.m. ET).
Last chance! Take the Pepperdine survey on private capital markets
A recent BVR survey found that over a quarter (26%) of respondents use the Pepperdine Private Capital Markets Study to estimate the cost of equity.
Review of Surveys on Cost of Capital Data Sources and Inputs
The Kroll Cost of Capital Navigator continues to be widely used and accepted for estimating cost of equity (COE). But BVR’s Cost of Capital Professional has been gaining considerable steam since its launch in 2018, according to a BVR survey. Some other resources for estimating the cost of capital have also seen an uptick in usage.
BV News and Trends March 2024
A monthly roundup of key developments of interest to business valuation experts.
Kroll-recommended ERP remains at 5.5%—for now
The latest cost of capital infographic from Kroll has the firm’s recommended U.S. equity risk premium reaffirmed at 5.5% when developing USD-denominated discount rates.
Global BVU News and Trends February 2024
Business valuation news from a global perspective.
Lower ERP likely for 2024, predicts Kroll
One of the “pivotal” trends for 2024 is a likely drop in the equity risk premium (ERP), predicts Kroll in its list of “10 Trends Shaping 2024.”
Reminder: The 2024 Pepperdine private cost of capital survey is open
Each year, Pepperdine University conducts an annual survey of expected rates of return with respect to private companies.
Damodaran posts his second data update for 2024
Focusing on the equity markets in the U.S. and across the world, Professor Aswath Damodaran (New York University Stern School of Business) has posted his second data update of 2024.
Damodaran posts his first data update for 2024
At the beginning of each year, Professor Aswath Damodaran (New York University Stern School of Business) generously posts a great amount of data on his website that include risk-free rates, equity risk premiums (ERPs), corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which are free.
The 2024 Pepperdine private cost of capital survey is now open
It’s that time again!